Bitcoin’s current price is $33,000
Bitcoin reached its all-time high in April, just below the $65,000 mark. However, by July, the cryptocurrency had shed nearly 50% of its value.
At the beginning of the year, bitcoin was just shy of $30,000, below its current price of $33,000.
In the early part of June, bitcoin’s 30-day volatility rose to 117%, according to Blockforce Capital and reported by Forbes.
The extreme swings in the price of bitcoin remain, and while many say it is the price to pay for long-term gains, it presents a risk for investors, especially those who are leveraged or need to access their holdings sooner than expected.
“Limited, highly inelastic supply on single cryptos can exacerbate volatility,” according to UBS. “Limited real world use and extraordinary price volatility also indicate many buyers are seeking speculative gains.”
One of the causes of the massive swings are traders taking excessive risks and being forced to sell when crypto prices fall.
Volatility could also attract institutions which may be able to capitalise on large price swings, especially over the short-term. This could be an important factor for the long-term price of bitcoin.
However, for now, many institutions appear to be reluctant.
